Gammon Gold Inc. has renewed the Penoles Lease Agreement for an additional three-year term. The Penoles Lease Agreement provides Gammon with the mining rights and use of the Las Torres processing and administration facilities located at Gammon’s El Cubo Mine. In 2008, all processing and administration at El Cubo mine was consolidated to the lower cost, higher capacity Las Torres mill.
Gammon Gold announce the successful conclusion of the strike action at its El Cubo mine in Guanajuato State, México. The union representatives agreed to recommend to its members the adoption of a seven-day continuous work schedule that Management had tabled as part of the negotiations of the union's collective agreement. The changes to the agreement were ratified at a vote by the union membership on June 13, 2009. The new agreement will be registered with the Secretariat and the workers will be returning to work today, June 15, 2009.
The 600 metre haulage level to the Las Torres mill is currently operating at over 60% capacity.
Commissioning an additional locomotive and associated carriages in December will allow for capacity to
increase to some 1,400 tonnes per day, or over 80%. The third processing mill was placed on care and maintenance during the quarter as 100% of the underground production has now been routed to the lower cost Las Torres processing plant
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